OPERATIONS MANAGEMENT

ANS-1
Introduction:
In the case of setting up any business, the location of the setup is an extremely
important factor. The performance of the business is by location. A good location
provides the business an additional advantage over the competitors while a poor
location can ruin the business, so the decision of location for the business setup is
extremely important. The location of the setup should be such that the strategic
place of setup should be able to emphasize the business. With the right choice of
business location the chances of success are also higher it helps to compete with
the competitors in a better way.

Concept and application:

Locating decisions are an integral part of the setup as it lays the basis of the flow of
material from the suppliers to the setup and finally to the customers. location
decisions affect the profitability of the firm as the manufacturing cost and logistics
and distribution have a direct impact on the location decision.
There are some of the basic factors or criteria that need to be kept into consideration
explained below:

1. Market-related issues:

First and the foremost factor are the “Market issues”. These market-related
issues are the basic building stones for the setting up of the business and play
the most important role in the business location site. These market-related
issues can be comprised of several subdivisions like
 Existence of market
 Size of the market
Improper market checks before setup can lead to high transportation costs of
the materials or the availability of the services, hence affecting the profitability of the
work. availability of raw materials, supply of human resources, services, and basic
facilities play a major role in the issue.
2. Cost-related issues:
Cost-related issues like transportation, logistics costs, manpower cost in form of
wages or input factor costs, and other tariff costs are included in this. These factors
on whole affect the sot factors and the profit factor and hence these are considered
for any setup location.
3. Regulatory and policy issues:
These issues include the policy of the local government of the area for setup
including the legal and judicial institutions and their qualities. Good quality of
governance free markets public finance and free access to the market increase
the value of the location
4. Other issues:
These issues include the cultural, linguistic, and climatic aspects of the very
quality of the life. These factors provide additional assurance for the
operational system of the setup and prove to be important inputs for the
system.

Taking the reference of a health care setup the various factors that should be kept in
mind while deciding the location of the setup can be understood below
1. Operational facilities:
While deciding on a location for any healthcare setup the operational
facilities should be checked for the proper and efficient working of the
operations of the system. The operational facilities can include the basic
amenities of power supply, water, transport facilities, and pharmacies.
Without the proper operational facilities, it will be very difficult for any setup
to run properly and efficiently.

2. Nearness to the market:

Another important factor is the distance from the market. This is an
essential part of the setup in a way that customers should be able to reach
the setup in the quickest possible period when required.
Healthcare organizations should also evolve their infrastructural strategy to
make sure that their facilities are well-situated and easily available to
potential customers as and when required to match the busy lifestyles of
the patients.

3. Size of the setup:

The size of the healthcare setup should be kept in mind while deciding the
location. the size of the setup should be enough to capacitate the client
stage and vehicles and other facilities. The size of the setup should
include all the primary and secondary medical facilities being made
available to the patients.

4. Convenience:
The location of the healthcare setup should be convenient for the potential
consumers in a way that the customer should feel convenient for the
location without any sort of problem in locating the setup or any other
inconvenience during the service being provided to them. Healthcare
 setups like Apollo or Max are providing their customers with the best
possible convenience facilities for the best possible results for their
organization.

5. Others:
Various other factors that need to be kept in mind can be issues of
security, locality, human factors are also important for deciding on the
location for the setup.

Conclusion:

From the above discussion, we can understand that there are no. of
factors and many more other factors that can further be used for deciding
the location decision for the healthcare setup. The organization should
keep these factors in mind and prioritize them based on a vision for
development. Healthcare organization can channel their site-locating
process and choose the best possible site!

References:

 NMIMS study material

 www.hfmmagzine.com
 Facility planning by Mr. Brian.C.Cich (COO, Rendina Healthcare
Real Estate)

ANS- 2:

Introduction:
In manufacturing or any service organization, it requires a proper physical
arrangement of various resources available for the organization to improve the
operational system workings. For example, in a manufacturing plant there might be
different and various types of machinery for different working operations in the case
of hospitals where different resources might be available physically. this process of
locating different resources is known as the “Plant Layout”.
This method of locating different resources within the working plant is used to
achieve the best possible output at the lowest possible cost available.

Concept and Application:

Plant layout signifies the arrangement of machines, work areas, equipment,
transports, materials, etc. Proper plant layout is an important key to the success of
factory management. A good layout minimizes time and shortens travel time and
reduces cost eventually thereby increasing efficiency. A good and efficient layout
ensures a variety of the vast majority of jobs to move shorter distances before
completing processing.
The layout should be in such a manner that in case of expansion of the organization
the layout can be easily changed without much difficulty in the operations processes.
The plant layouts are responsible for an orderly flow of materials and other resources
hence it becomes extremely important to have an effective plant layout.
Advantages of efficient plant layout
 Effective use of the surface area available
 Minimum production delays
 Improved quality control
 Minimum equipment investment
 Better production control
 Better supervision
 Better utilization of labor

Plant layout can be divided into various types namely as below

1. Process Layout:
The process layout or also known as the “functional layout” is the
arrangement of the resources based on the process factors of any plant. In
this particular layout, similar machines, and similar operations are
combined based on their function, and similar kinds of tools, power tools,
and machining tools are all placed in a single area to save the valuable
period of the working process.
Considering an example of an automobile manufacturing plant, the raw
materials required for the manufacturing shall be located in one place from
where the required raw materials can be divided into various working
areas.
The machining area, sheet metal area, electrical and automation area,
assembly shop and testing area are the various areas for the plant layout.
the final output component can be finally shifted to the quality testing area
and then to the storage and dispatch section where the rejected ones can
be returned.
For example, Bharat Heavy Electrical limited (BHEL) plant in Haridwar
works on the process layout section for turbine blade manufacturing.

Advantages:

1. Provides flexibility in the allotment of work to equipment and workers.

2. Better usage of the available space.
3. Reduction in capital investments.
4. Improves the quality of the production.
5. Visual control improved.
6. Improves communication between workers and supervisors.
 Application:

 Batch production or moderate production.

 Group technology

2. Product layout:

In the case of the product layout in a plant, various operations are carried
out in sequential order and hence the resources are provided in a proper
sequential manner.
In this layout, various machines run to produce the product in a prescribed
order. We can find such layouts in a manufacturing unit. products layouts
can be either Linear or in U-shaped form. the resources are provided in a
sequential order to achieve a smooth product flow movement from one
workstation to the next workstation.

Characteristics:

 Involves huge equipment for the production

 Machines involved are sophisticated in nature
 Requires high investment in machines and equipment
 Requires more physical work than technical work

Advantages:
 Smooth and continuous flow
 Less skilled labor is required
 Reduction in inventory
 Lesser manpower required
 Optimised usage of the land and financial resources of the unit
 Few areas of mistakes

Applications:

This type of layout can be mostly found in the manufacturing units for example
automobile components, sugar industries, paper industries, electronic
components manufacturing industries

3. Fixed layout:

This type of layout system can also be known as the “Position Layout” or
the “Project Layout”. It is used in situations where the products being
manufactured are big, heavy, and difficult to move and where often the
component is manufactured in a single piece quantity at a time.
 Required resources such as machinery, equipment, manpower, material,
etc are transported to the product’s location. The location of the product
remains fixed due to its heavy size and structure. transportation and
shifting costs in this layout system are comparatively less as compared to
the moving types jobs.
This type of layout system can be used for building heavy products such
as shipbuilding docks where ships are built (Reference – cochin shipyard
limited Cochin), aircraft manufacturing units

Advantages:
 Minimum changes in the location for labor, machines, tools,
equipment, etc.
 Highly skilled job hence enhances working skills of the workers
 Teamwork and quality oriented
 Offers greater flexibility

Applications:

 Shipbuilding
 Aircraft manufacturing
 Locomotives manufacturing
 Nuclear reactor plant

4. Group technology layout:

This layout provides an alternative method for configuring the resources

for organizations with mid-volume, and mid-variety together to form a part
family.
In this system number of similar machines are arranged in a sequence to
manufacture various types and sizes of products. The only change noticed
here can be seen in the physical sizes while the sequence of operations
remains the same. It can be seen as a combination of both product and
process layouts and includes the benefactor results of both types.

Advantages:
 Reduction in machining cost and material handling
 Reduces the lot size
 Simplified production planning function

Application:
 1. Crankshaft manufacturing
2. Hacksaw industry

Based on the discussion above let us understand restaurants as in for process

layout.
In the case of the restaurants, the working or the process starts from the restaurant’s
entrance
1. Reception:
Temporary holding area where the receptionist takes the names and the
headcount of the customers.
2. Directions:
Customers are directed toward their designated tables or seating
arrangements.
3. Reviews and placing orders:
Customers review the menu and the orders are placed by the respective
waiter along.
4. Order Confirmation:
The waiter takes the order and confirms the order for any checks.
5. Orders placed on board:
After the customer confirms the order, it is placed on the order board for the
chef.
6. Receival and preparation:
Once the order is placed on the order board and order is reviewed and the
preparation of the order is carried out.
7. Attention of waiter;
Once the food has been prepared the waiter is informed to collect the order.
8. Order served:
The waiter collects the order from the dispatch arena and is served it to the
customer.
9. Payments:
After the food has been taken up by the customer, the waiter is asked for the
bill to be generated and the waiter hands over the bill, the customer reviews
the bill, and payments are carried out.
10. Customer leaves:
After the bills have been cleared out the receipts are handed over to the
customer and the customer leaves the restaurant.

Advantages:
 Smooth flow
 Proper communication flow
Disadvantages
 Low utilization
Conclusion:
From the above discussion, we can understand that the concept of plant layout plays
an extremely important role in the industry. Different organizations with different
workings have different sets of plant layout systems to achieve the organization’s
goals. This different layout provides the best and most efficient procedure for
working as per the different points of applications.
References:
 NMIMS study material
 https://www.businessmanagementideas.com/industries/plant-layout

ANS-3(a)
Introduction:
The educational system these days has seen a great deal of transformation from the
normal education system prevailing in the country. Educational setup nowadays
does not only means providing education but it has also got various departments
with different functions for the overall educational setup to operate smoothly. Right
from the initial stages of the primary level, the sophistication and high level of
interaction level have increased the level of access to knowledge.

Concept and application:

As we know that educational setup has got several operations that need to take care
of for their smooth and proper workings. There are various functions like planning,
operations, administration safety, etc. that need to be looked into.
An operations manager is the person responsible for acting as the bridge between
the various functions and the departments to work in a smooth and synchronized
manner. operations managers have to handle every aspect while working along that
may include
Board governance, marketing, public relations, financial aspects along with handling
the human resource and the development of the employees working along.
The role of operations management concerning various departmental functions can
be explained below

1. Resource management:
Managing the resources in the setup is an important aspect of the function
where all different resources like human resources and infrastructural
resources etc. are joined together. It becomes the core duty of the operations
 manager to manage the resources properly and carefully to maintain the
operations smoothly.
Example:
 Working site
 Check and maintenance of machinery under usage
 Inventories and supplies
 Improvements to physical infrastructure
 Improvements in technological infrastructure

2. Financial management;

It becomes very important for the operations manager to have a close and
sharp eye on the financial aspects of current plans. These financial plans and
the financial aspects need to be taken care of by the administration team so
that all the financial areas for the betterment are fully covered.
Example:
 Budget plans
 Future growth plans
 Cost controlling
 Check on the financial statements and details of finance movements.

3. Administration management:

Operational managers should work hand in hand and coordinate with the
management to take crucial decisions. All the administration operations
should be monitored and if any issues are found the resolutions are to be
carried out.
Examples:
 Supervision all Instructing and Non-Instructing staff
 Plan scheduling
 Disciplinary plan
 Grievance issues

4. Reporting and communication:

Various reporting is to be properly communicated to the management and the

working staff for any pieces of information being carried out. The operational
manager should ensure that all the reporting and communications are done
and understood by both for smooth working.
All the reporting regarding the development, any upcoming issues, problems
or points to be noted should be properly carried out to and fro from
management to the operational level.
 5. Human resource management:

The operations in charge should ensure that the human resources are fully
trained and competent for their tasks and also regular development of the
skills is being carried out. All human resource functions should be closely
monitored and checked.
Example:
 Staffing plans
 Recruitments and hiring
 Payrolls and benefits
 Employee performance records
 Retirements and promotions
Conclusion:
From the above discussion, it can be concluded that the role of an operational
manager in an educational setup is an extremely important aspect to maintain a
crucial and much-required balance and synchronization between the departments as
any disturbance in any part can lead to hampering the working of the whole working
system just as in any organization.
Also, operation managers are goal and objective setters in the organization with the
managers of various other departments, so they have to be a center pivot point
around which the whole setup revolves, hence it becomes important for the
operations managers to be fully ready and competent!

ANS-3(b)
Introduction:
In operations management, the most important aspect of any industry is the “quality”
aspect of the product. it is the quality of the product or the service that decides
whether the product or the service is successful or not. if the customer is satisfied
then the quality of the product or the service was good or bad.
Concept and application:
The term “quality” can have different meanings at different levels. some people can
see quality as the performance to the standards while some can see quality as the
“fitness for use”
In the case of the operations in the company product quality can be referred to as
the level of excellence that a product achieves in the case of working and
performance and reliability.
The operation managers mostly focus on quality to ensure that the products of the
organizations meet the expectations and requirements of the customers and the
desired value of customer satisfaction is achieved after the use of the products or
services.
Quality can be divided into eight various dimensions. According to David. A. Garvin.
Namely as below
1. Performance:
Every customer expects a; level of performance from purchased products. If
the product is at the expected level of performance then the product quality is
good and if performance is not at the satisfaction level then the quality is not
good.

2. Features:
The aspect of features provides an additional attribute that enhances the
quality of the product or service. these “features” are the extra benefits that
are provided as complementary to the product or service, for example, inbuilt
mobile app subscriptions for bill payments.

3. Reliability:
It is the aspect that the product will perform satisfactorily for some time. for
example, batteries have a period of five years and others.

4. Conformance:
This aspect means that the product has dimensional values under the limits of
the expected specifications.

5. Durability:
this means that the time duration for which the product will last before it
reaches the limit at which it needs to be changed.

6. Serviceability:
It means the ease of service that is required by the product after the usage for
a certain period. for e.g engine components like air filters, engine oil, etc.

7. Safety:
Safety aspects denote the confidence level of the customer while using that
product that there are no harms or hazardous results after the use of the
products. For example, cosmetics

8. Aesthetics:
This aspect looks into the physical appearance of the product and the feel-
good factor. This aspect is judged by individual preference and personal
judgment level.
Conclusion:

These 8 dimensions by David.A.Garvin has proved to be an effective

strategic management tool to meet the customer satisfaction level and also
understand the level of customer level. These dimensions cover the total 360-
degree concept of the “quality” aspect f the product or the service being
offered by the organization.

References:
 NMIMS study material